Rural E-commerce, Digital finance, and urban–rural common prosperity: A Quasi-natural Experiment Based on China's Comprehensive Demonstration of E-commerce Entering Rural Areas Policy

•E-commerce in the countryside has a significant positive impact on the urban-rural commonwealth.•E-commerce's rural impact varies by region (east, central, west). The east has the most potent wealth effect, and the West has the weakest.•Digital finance is an essential mediating variable in promoting urban-rural commonwealth through e-commerce in the countryside. This study examined the impact of China's Comprehensive Demonstration of E-commerce Entering Rural Areas Policy (hereafter “the Policy”) on urban–rural shared prosperity. The empirical analyses indicate that the Policy has significantly elevated urban–rural common prosperity while exhibiting regional disparities. China's eastern region has shown the most substantial positive impact, followed by the central region and the western region. The findings illustrate the pivotal role of digital finance as a mediating factor in enhancing common prosperity through e-commerce initiatives in rural areas. These findings offer empirical evidence for formulating and refining urban–rural development policies in China.